Question
Assume that country A and B are trading partners. If A's currency appreciates in comparison to B's currency. Which of the following will be true
Assume that country A and B are trading partners. If A's currency appreciates in comparison to B's currency. Which of the following will be true in this scenario?
A. Net exports of country A will decrease, and net exports of country B will increase. B. Net exports of country A will decrease, and net exports of country B will also decrease. C. Net exports of country A will remain unaffected, and net exports of country B will increase. D. Net exports of country A will increase, and net exports of country B will remain unaffected. E. Net exports of country A will increase, and net exports of country B will also increase.
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